There are two types of funds available for investors: active and passive. Active funds are those where the fund manager takes a call on what securities to buy and sell. A passive fund, as its name suggests, is one where there is no call that a fund manager takes, but buys securities that mimic an index. Exchange-traded funds (ETFs) and index funds are forms of passive funds. Here’s a look at what to pick, based on the following factors:
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